Norwegian giant has had enough of 'green policy'. It will increase oil and gas production

Equinor operates under the pressure of two expectations. It must generate profits for shareholders, while the Norwegian state, as the largest owner, also wants the company to act in line with the Paris Agreement goals. However, green investments often have lower profitability than oil and gas projects. In recent years, Equinor has scaled back its climate ambitions several times. Now, the company has announced another shift.

Equinor wants to increase production by 150,000 barrels of oil equivalent per day by 2035. This would mean a level of 2.3 million barrels per day. The company has also raised its targets for the Norwegian continental shelf. In 2030, this is to be 1.35 million barrels per day, and in 2035, 1.3 million barrels per day.

The changes are to be achieved, among other things, through cost cuts and further subsea projects. Equinor has also announced greater transfers to shareholders, including higher share buybacks and rising dividends. At the same time, 90 percent of investments are to go to the Norwegian shelf and international oil and gas operations. The company plans to allocate 10 percent of investments to renewable energy.

Kristoffer Sivertsen from the Progress Party (FrP) called Equinor's decision a 'realization.' He said the state should stay out of green requirements that limit production on the Norwegian shelf. According to him, the focus should be on jobs, energy security, and increased extraction. He added that abandoning green targets is 'music to his ears.'

Frøya Skjold Sjursæther from the Green Party (MDG) assessed that Equinor is 'detached from reality.' She pointed out that the world is investing more in renewable energy sources than in fossil fuels. In her opinion, the company is acting against what is needed to achieve climate goals. Equinor has previously explained that the world needs more and more energy, and the energy transition takes time.

The dispute also concerns Equinor's owners. The Norwegian state holds 67 percent of shares and supports the company's transformation plans. Senior analyst at KLP Kapitalforvaltning, Arild Skedsmo, points out in E24 that the market often reacts with a drop in share prices to credible climate plans by oil companies, and with a rise to cuts in green ambitions.